Article by Elliot Rhodes
China is inarguably the fastest growing economy in the world today. The East Asian nation is currently the second biggest economy in the world behind the US. And because of the massive tech growth that the country is experiencing right now, coupled with the fact that its youth population is the largest in the world, businesses have access to cheap and experienced labor as well as a ready market for their products.
With the increasing number of middle-class earners in the major regions of Shanghai, Beijing, and Hong Kong, the purchasing power parity in China is unmatched globally. Indeed, China is the world’s greatest nest of startups. Here are 2 more reasons why this is the case:
- A strong culture of innovation
Over the last quarter-century, China has been investing heavily in key sectors that nurture the culture of innovation and sustainable growth. The sectors of life sciences, mobile technology, and automobiles have now been revolutionised to become innovation-based. This has resulted in massive ownership of smartphones and automobiles in both urban and rural China. If the current trends are anything to go by, then China’s economy will continue to grow exponentially even in the coming decades. This is a good sign for tech and automobile startups. However, one thing should not be forgotten by any foreign company that seeks to penetrate the Chinese market and that is the Chinese language and the importance of mastering it before entering the market.
- Unrelenting entrepreneurial spirit
Young Chinese professionals are showing an unbreakable resilience when it comes to pursuing their entrepreneurial dreams. There are now more working graduates in China than ever before, the employment laws are favorable for business, and the government is striving to make the atmosphere conducive for entrepreneurial growth. These are some of the factors necessary for startup growth. The good thing about the Chinese is that they not only support their domestic startups to grow, they are also very welcoming to foreigners. Tax incentives and relatively cheap rent, for example, have been attracting overseas investors in huge numbers.
Which Are the Key Opportunities for Startups in China?
Your chances of succeeding in the China market are high, but it is always better if you could find the most suitable sector to join. Which business will attract the best talents in the country? Which services would interest the most mid and upper-class Chinese? Knowing the answers to these questions is the first step towards a successful, long-term business. While at it, you will need to consult a reputable recruitment agency such as Sky Executive, when finding the right, low-cost, and productive workforce.
Now, which are the most lucrative startup opportunities in China today?
- Clean energy
Every growing economy struggles to find a workable balance of industrial development and environmental sustainability. China isn’t an exception. That is why the government is encouraging startups who have reasonable alternatives to fossil fuels to come and invest in the country. If you are an expert in wind power, solar power, and any other branch of clean energy, then you have a solid investment opportunity waiting for you in China.
- International trading platforms
China imports most of its food from Europe and Africa. On the other hand, the country exports tons of low-cost tech products such as phones and computers to the US and many other parts of the world. If you could establish a startup importing and exporting agency or, better still, an international trading platform in China, you will definitely have many businesses leads to pursue. Just be sure to have reliable agents from all over the world who have access to low-cost but quality products.
- English training organisations
Almost every Chinese graduate today wants to learn the English language. As a matter of fact, English is quickly growing to become the second most used language in the country. According to experts from Globalisation Pedia, being in the recruitment market and knowing the market, “if you have a strong command of the language, then an English teaching business would be a great venture for you”.
- Tourism and hospitality
The tourism industry in China has grown tremendously over the last decade, currently trailing the US as the second-best country in domestic tourism volume. And because many foreign business owners are coming to China in drones to look for cheap products to take back to their countries, the hospitality sector is booming as well. Just start a tourism service or start a hospitality company and then advertise them thoroughly on social and digital media. You will get tons of business in due course.